Nigeria and Ethiopia among countries to benefit from Dangote Cement’s $1 billion expansion drive
Dangote Cement, one of Africa’s largest cement producers, has unveiled plans to invest $1 billion over the next four years to expand its manufacturing footprint across the continent, with Nigeria and Ethiopia among the key markets expected to benefit from the investment.
The cement giant, controlled by Africa’s richest man Aliko Dangote, currently has an installed production capacity of about 55.17 million tonnes per year across its operations in Africa. Through the new capital injection, the company aims to increase its production capacity by approximately 45%, reaching 80 million tonnes annually within four years.
The development was disclosed by the company’s Chief Financial Officer, Gbenga Fapohunda, during an investor conference call held in Lagos, Nigeria’s commercial hub. According to Fapohunda, the funds will be deployed to expand existing facilities and build new plants across several African markets, including Nigeria, Ethiopia, and other strategic countries where demand for cement continues to rise.
Major infrastructure partnership with Sinoma
The expansion initiative follows a $1 billion engineering agreement signed in February between Dangote Cement and Sinoma International Engineering, a leading Chinese construction and engineering firm.
The landmark agreement covers 12 industrial projects across seven African countries and forms part of Dangote Cement’s broader plan to raise its total production capacity to 80 million tonnes per annum by 2030.
Beyond boosting manufacturing output, the company is also pursuing an aggressive export strategy. Dangote Cement plans to increase exports of cement and clinker to 10 million tonnes annually by 2030, a sharp jump from 1.4 million tonnes recorded in 2025.
Recent export figures already signal strong momentum. The company reported an 18.6% rise in cement and clinker exports from Nigeria, shipping 34 vessels of clinker to Cameroon and Ghana during the year.
Expansion to be funded through multiple financing channels
To finance the ambitious expansion plan, the company will rely on a mix of operating cash flow, supplier credit arrangements, commercial papers, bonds, and bank loans, according to the CFO.
The strategy reflects Dangote Cement’s broader ambition to strengthen its leadership in Africa’s cement market while positioning Nigeria as a regional manufacturing and export hub.
The company’s Group Managing Director, Arvind Pathak, previously highlighted that the firm would continue commissioning new production capacity and advancing expansion projects across several African markets.
“We are confident in our growth trajectory and our ability to capitalise on Africa’s robust cement demand fundamentals,” Pathak said in an earnings release filed with the Nigerian Exchange.
He added that the company will soon commission the transformational 6 million tonnes per annum Itori cement plant, while pushing ahead with expansion projects in Ethiopia, Cameroon, South Africa, Zambia, and Senegal.
Record financial performance
The expansion drive comes shortly after Dangote Cement reported its highest profit on record.
The company announced that its net profit for 2025 surged to ₦1 trillion (approximately $730 million), more than doubling the previous year’s earnings at an exchange rate of ₦1,369.06 to $1.
Revenue also climbed 20.3% to ₦4.3 trillion (about $3.14 billion), driven largely by strong domestic demand and improved pricing strategies.
Interestingly, the record earnings were achieved despite a slight drop in overall sales volumes, highlighting the company’s growing focus on margin protection, cost efficiency, and export-led growth.
First company to list commercial papers on NGX
In February 2026, Dangote Cement also made history by becoming the first company to list Commercial Papers (CPs) on the Nigerian Exchange Limited.
The listing followed the launch of a Commercial Paper window by the Nigerian Exchange in December 2025, after receiving regulatory approval from the Securities and Exchange Commission Nigeria.
Dangote Cement listed Series 1 and Series 2 Commercial Papers under its ₦500 billion Commercial Paper Issuance Programme.
Series 1: ₦19.95 billion with a 181-day tenor, maturing May 20, 2026
Series 2: ₦99.92 billion with a 265-day tenor, maturing August 12, 2026
Both instruments were issued at a discounted price and will be redeemed at their par value of ₦1,000 upon maturity, offering indicated yields of 17.5% and 19% respectively.
Strategic expansion across Africa
Dangote Cement has also continued to expand its physical infrastructure across the continent. In October 2025, the company commissioned a $160 million cement plant in Attingué, located about 30 kilometres north of Abidjan in Côte d’Ivoire.
The facility, spread across 50 hectares, has a production capacity of three million metric tonnes per year, making it one of the company’s largest operations outside Nigeria.
With the new $1 billion investment programme, Dangote Cement is expected to further strengthen its position as Africa’s dominant cement producer, while supporting infrastructure development and construction growth across the continent.
